Choosing the Right Type of Collection Agency

In-house debt collection programs are often also called first-party debt collections, as the company who initially issued the credit is directly involved with the recovery of said debt. A first-party debt collection program can offer some advantages, mainly because the time between an account being deemed bad and it being turned over to the debt collection agency is often much shorter than if a third-party is used. Often, making sure information quickly and effectively is passed between the credit issuing department and the debt collection department can be shorter and have fewer hurdles.

However, while there are some advantages to preforming in-house debt collections, setting up a program that is effective is no simple task and requires a great deal of resources and training, which is why many companies find that a third-party debt recovery company is not only less expensive, but also more effective.

Third-party debt collection companies are not directly affiliated with the original company that issued the debt, the first-party, nor are they in anyway associated with the debtor, who is referred to as the second-party. Instead, the collection agency is unbiased and, since they are not associated with the company, do not have to worry about office politics or protocols, which often serve to interfere with debt collection services.

Depending on the service agreement with the creditor, the collection agency may make a set amount per action or only get a percent of recovered debt. In the case of the latter, where the company is paid a commission only on debt that is recovered, there is a greater incentive to be effective and efficient, as the company will only get paid when they are successful in recovering the creditors assets. These companies often offer a “No-Collection, No-Fee” guarantee.

In the case of debt collection agencies that get paid on per-action basis, this is often largely for the initial contact, or soft-collection process. During the initial soft-collection process, the client will receive one or more letters, which urge them to pay the debt to avoid it being sent to collections. In these cases, the collections agency might charge as little as $10 per letter, with the understanding that later on during the process, a third-party debt solution will be used.

A debt recovery program can be a great way to ensure that bad debt does not force a company underwater and that a companies assets can be maintained. It is not uncommon for companies to develop a mix of in-house and third-party debt recovery policies, to ensure that the most effective debt recovery solutions are maintained.

Staycations – Hotel Marketing for Current Economic Conditions

OK then, if that’s just the way it is, then why not conduct business and plan accordingly with this obvious fact in mind?

Staycations happen when consumer travel plans change because of a struggling regional economy. When the value of the dollar decreases, gas prices and everything else increases. That means U.S. bound travelers will make or adjust their travel plans to destinations at the last minute. This usually causes a decline in forecasted pre-season booking expectations. And, this often means the length of stay per guest will decrease as travelers tend to visit areas within a smaller radius of their home base.

It’s not a just a shift in consumer spending that causes the trouble, it’s the way businesses adjust to the changing economy. The hotels bound to make it through any tough economy are those who are prepared for it. When times are good and the money is rolling in, do you sit back and admire your perfect winning strategy and push any other idea away? Or, do you make consistent efforts to join an ever-changing world-wide room reservation process?

Your business’ success is, first, subject to the opinion of others… So, considering the best practices for hotel management and marketing today, how can you impact guest opinions positively? Answer: Never Stop…

There is no end to marketing or improvement practices for business operations. These vital elements of success are always evolving and better methods will forever present themselves which outweigh traditional business practices. Internally, how does your Hotel perform? Is guest service an issue at any point of the in-house stay process? Did you know that guests are less likely to leave a bad review on TripAdvisor if you conduct in-house guest surveys and pro-actively broadcast your desires to ever-improve guest interactions? You can now do this easily through your own website, by texting in-house guests, or the old fashioned way – by print.

What about the booking process? Is it seamless, easy, and obviously secure for payment processing? Knowing the ways travelers will be making their bookings this summer will make it possible for you to benefit from small pocket travelers while others struggle. So, why not prepare for this type of traveler? Make things easier for last-minute reservations to occur by cleaning up your cancellation policy and expanding your guest stay limitations and offering promotions before you lower your room rates. In fact, why not consider every alternative before you get caught in a rate battle you can’t win.

Is your website up-to-date? Are you participating in online marketing and mobile device targeting for the fastest growing hi-tech consumer market? Are you using social media marketing to encourage growth by word-of-mouth? Email blasts? Direct mailers? Pay-Per-Click? What methods will perform best and what is the best way to execute?

Promotions! Before you drop your rates for any reason, think about attracting specific bookings through promotional targeting – I’ve never seen a properly executed promotion fail for a hotel.